Texas Instruments (TI) (NASDAQ: TXN)Recently announced its third quarter financial report, operating income of 3.82 billion US dollars, net income of 1.35 billion US dollars, and earnings per share of 1.45 US dollars.

Regarding company performance and shareholder returns, TI Chairman, President and CEO Rich Templeton made the following explanation:

• "Due to the obvious rebound in demand in the automotive market and the growth in demand for personal electronic products, revenue rose 18% month-on-month and 1% year-on-year."
• In our core business, analog product revenue increased by 18%; embedded processor revenue increased by 19%. Compared with the same period last year, the former increased by 7% and the latter decreased by 10%.
• In the past 12 months, operating cash flow reached 5.8 billion US dollars, once again reflecting the advantages of the company's business model. Among them, free cash flow reached 5.2 billion US dollars in the past year, accounting for 38% of operating income. This reflects our high-quality product portfolio and efficient manufacturing strategy, including the production advantages of 300 mm (12 inches) analog products.
• "Returns to shareholders through share repurchase and dividend distribution in the past 12 months amounted to US$6.4 billion. Among them, the distribution of dividends accounted for 64% of free cash flow, reflecting its sustainability. We announced in September that we would increase the dividend by 13%. . Stock repurchases and dividends reflect our consistent commitment to return all free cash flow to shareholders."
• "Texas Instruments' forecast for the fourth quarter of 2020 is: operating income is between $3.41 billion and $3.69 billion, and earnings per share range from $1.20 to $1.40."

Free cash flow is notGAAPFinancial metrics. Free cash flow refers to the cash flow generated by operating activities minus the remaining cash after capital expenditures.

ForeseeTest statement notice

This press release contains forward-looking statements based on the disclaimer provisions of the Private Securities Litigation Reform Act of 1995. These statements are generally presented with TI and its management "believe", "expect", "anticipate", "foresee", "estimate" or other words with similar meanings. Similarly, the statements in this article regarding TI's business strategy, prospects, goals, plans, intentions or goals are also forward-looking statements. All such forward-looking statements involve certain risks and uncertainties, which may cause actual results to differ materially from the contents of the forward-looking statements.

We hope that readers will carefully consider the following important factors, which may cause actual results to differ materially from TI or its management expectations:

• The duration and scope of the new crown epidemic, the response of the government and other third parties to it, and the impact on the global economy, including the impact on our business and our suppliers, customers and distributors;
• The economic, social and political conditions and natural events of the countries where we, our customers or our suppliers are located, including global trade policies;
• The market's demand for semiconductors, especially in the industrial and automotive markets, as well as customer needs that are different from forecasts;
• We maintain the ability to compete with products and prices in a highly competitive industry;
• The evolution of cyber security and other threats related to our or our customers or suppliers’ information technology systems;
• Our ability to successfully implement and realize strategic, business and organizational change opportunities, or our ability to achieve the expected amount and time of restructuring costs and related cost savings;
• Our ability to develop, manufacture and sell innovative products in a rapidly changing technological environment, as well as our ability to implement new manufacturing processes and install manufacturing equipment in a timely manner;
• Availability and cost of raw materials, utilities, manufacturing equipment, third-party manufacturing services and manufacturing technology;
• Product liability, warranty or other claims related to our products, manufacturing, delivery, service, design or dissemination, or the recall of products containing one of our components by our customers;
• Comply with complex laws and regulations or changes in the legal system, or official compulsory measures that restrict our business operations, or we are subject to fines, penalties and other legal liabilities;
• Changes in tax rates due to changes in tax regulations and accounting standards also apply to us. In jurisdictions, taxes must be paid based on the profits obtained, unfavorable resolutions of tax audits, increase in tariff rates, and the ability to realize deferred income tax assets ；
• Loss of our entrusted inventory caused by customers and distributors;
• Distributors are financially difficult or their promotion of similar competitive product lines cause us losses; or have disputes with important distributors;
• Due to loss or reduction in purchases caused by major customers, distributors and other customers adjust the time and amount of inventory involved;
• The ability to maintain or increase profitability in highly competitive cyclical industries, including the ability to make full use of production facilities to achieve fixed operating costs;
• We maintain and implement a strong intellectual property portfolio and maintain the ability to operate freely, or we suffer infringement claims;
• The instability of global credit and financial markets;
• Increased costs of medical care and retirement allowances;
• Our ability to recruit and retain skilled technical personnel, and the ability to effectively deal with key post handover issues; and
• Impairment of non-financial assets.

For a more detailed discussion of these factors, please refer to the discussion of Item 1A "Risk Factors" in Part II of TI Form 10-Q as of March 31, 2020. The forward-looking statements contained in this press release are valid only as of the date of this press release, and TI assumes no obligation to update these forward-looking statements to reflect subsequent events or circumstances. If we update any forward-looking statement, it should not be inferred that we will make additional updates to that statement or any other forward-looking statement.